Brigade sells $398.6 million CLO; First Eagle brings middle-market deal; CLO spreads flat

By Cristal Cody

Tupelo, Miss., Oct. 5 – In new CLO issuance, Brigade Capital Management, LP priced a $398.6 million broadly syndicated offering.

Meanwhile, First Eagle Alternative Credit, LLC sold $313.95 million of notes in a middle-market CLO.

In the secondary market, broadly syndicated CLO spreads were unchanged “across the board” last week as BWIC volume dropped 50% to $744 million, down from $1.43 billion of volume in the prior week, according to a BofA Securities, Inc. research note released on Monday.

AAA spreads ended Friday flat on the week at a Libor plus 145 basis points average.

BBB tranches were steady at Libor plus 475 bps.

In its deal, Brigade Capital Management priced $398.6 million of notes due Oct. 15, 2032 in the CLO offering, according to market sources.

Battalion CLO 18 Ltd./Battalion CLO 18 LLC sold $236 million of class A-1 floating-rate notes at Libor plus 180 bps at the top of the capital stack.

Meanwhile, First Eagle Alternative Credit priced $313.95 million of notes due Oct. 15, 2029 in the Lake Shore MM CLO III LLC/Lake Shore MM CLO III LLC transaction, according to market sources.

The middle-market CLO sold $182 million of class A floating-rate notes at Libor plus 230 bps in the AAA-rated tranche.

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